Forbright, Inc. Reports Third Quarter 2026 Results
Quarterly lending and credit metrics improved, while nine-month net interest income and returns remained below year-earlier levels.
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EPS of
Net interest income up
Loan balances up
Digital deposits grew by
Core net charge-offs declined to 3 basis points in Q3
Fellow Shareholders,
Forbright, Inc.(1) (Nasdaq FRBT), the parent company of wholly-owned subsidiary Forbright Bank (the "Bank"), today reported financial results for the third quarter ended September 30, 2026.
Last quarter, we committed to writing to you plainly, so we will start with the headline: this was a strong quarter. The Company met or exceeded nearly every key performance metric we track relative to our expectations for the quarter. In addition, we believe the business is well-positioned for a strong finish to 2026 and a strong start to 2027.
Looking ahead, we believe our credit discipline, commitment to process and expense management, efficient digital funding platform, and focused lending strategies and fee businesses position the Company very well for long-term growth.
We will begin, as we should, with the numbers for this quarter:
-
Net income attributable to the Company was
$20.6 million $0.41
-
Loans grew
9.5% — from$6.1 billion $6.6 billion
-
Net Interest Margin of
3.18% was roughly flat this quarter, compared to3.19% last quarter.
- Credit quality was excellent. Loans on non-accrual were down, our average loan risk rating improved, and our core net charge-off rate was down to 3 basis points from 8 basis points in the prior quarter.
-
Future growth is supported by
$7.6 billion $1.9 billion $744 million $721 million
While current conditions remain favorable, we endeavor to operate the business prudently and believe we are well-positioned to adapt to changing economic conditions.
1 Forbright, Inc. is referred to as "Forbright," the "Company," "we," "our," or "us" throughout this press release. |
Quarter-over-Quarter |
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Year-over-Year |
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Net interest income was |
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Net interest income was |
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Provision for credit losses was |
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Provision for credit losses was |
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Net interest margin was |
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Net interest margin was |
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Efficiency ratio was |
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Efficiency ratio was |
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Return on average stockholders' equity was |
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Return on average stockholders' equity was |
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Return on average tangible common equity(2) was |
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Return on average tangible common equity(2) was |
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Non-interest income was |
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Non-interest income was |
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Core non-interest income(2) was |
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Core non-interest income(2) was |
__________________ |
(2) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure. |
BALANCE SHEET SUMMARY |
Total assets increased
Loans
Total loans were
Investment Securities
Total carrying amount of investment securities was
Deposits
Total deposits were
Borrowed Funds
Total borrowed funds were relatively flat at
Stockholders' Equity
Total stockholders' equity was
OUR VIEW |
This quarter demonstrates the strength of our business model and continued execution against our growth strategy.
Lending: Loan growth was
Fee Businesses: Our FHA/HUD strategy had a good quarter, including some catch-up from a slower second quarter. As noted last quarter, we expect results in this business to vary meaningfully QoQ. Our other fee businesses performed generally in line with plan. We have strategic and operational work to do to re-start growth in Alliance Partners, and that work began this past quarter. Higher long-term rates are expected to extend the duration of the servicing book in Solar Servicing.
One note on presentation in our fee businesses: Solar Servicing amounts are increased both in non-interest income and non-interest expense by reimbursable expenses of
Deposits and liquidity: As previewed in last quarter’s earnings presentation, the deposit promotion capability we launched in June exceeded expectations. We ended the quarter with
Credit: Credit quality was excellent, and our average loan risk rating improved again this quarter. Forbright’s national, sector-focused commercial lending capabilities provide attractive financing solutions for our clients. At the same time, we manage credit risk by using our expertise and rigorous diligence to make critical and objective assessments of the risk in each loan we make.
Expenses and Efficiency: Our expense management efforts continue to pay off, and we are on track to meet or exceed our 2027 expense and efficiency objectives. Our efficiency ratio improved to
Branch Sale to Trustar Bank: As noted, during the quarter, the Bank entered into an agreement to execute the Branch Sale to Trustar Bank. The transaction sharpens Forbright’s strategic focus on building a differentiated bank with three nationwide and complementary businesses: a scalable digital banking and deposit platform, a specialized middle-market commercial lending strategy, and fee-based advisory and servicing capabilities.
AI AND THE FUTURE OF DEPOSITS |
As previewed last quarter, we believe AI will accelerate the shift of deposits from branches to digital platforms. A good example of this is the recent launch of a personal AI assistant from a global social media company that quickly became one of the fastest-growing AI apps ever launched. It is an early indicator of a world where AI agents will allow consumers to shop for good savings rates; move money to attractive yield; and strip away the inertia that has long kept cheap and sticky consumer deposits in brick and mortar branches.
For banks, we believe an advantage will shift to institutions with attractive rates, the lowest-friction onboarding technology and an agent-ready platform. Forbright, Inc. Chairman and CEO, John Delaney recently co-wrote in the Wall Street Journal: this is "unambiguously good [for consumers]" but it also raises the bar for banks, and it is the shift Forbright is intently focused on.
Our Digital Banking team plans to roll out new AI capabilities in 2027 that are designed to allow Forbright customers to experience the benefits of AI without compromising financial security. For example, we plan to introduce a virtual card that customers can assign to their AI agents. This new feature is designed to help our customers keep their bank accounts private while securely making purchases through their AI agents. Our upcoming Virtual Card for AI agents is expected to allow users to set strict dollar limits and receive real-time updates, so people can have their AI agent order food delivery or make retail purchases without having to offer their banking history or debit cards. We also plan to give our customers the ability to provide their AI agents with permissioned, logged, and read-only access to Forbright data.
We view Forbright as well positioned for the AI-related changes coming to banking, and we intend to make sure it stays that way.
COMPARISONS |
Quarter-over-Quarter
Net Interest Income / Net Interest Margin
Net interest income was
Total interest income increased
Total interest expense increased
Net interest margin was
Provision for Credit Losses
The Company recorded a provision for credit losses of
Non-interest Income
Total non-interest income was
Core non-interest income(2) was
Non-interest Expense
Total non-interest expense was
Income Taxes
Income tax expense was
Income tax expense for the three months ended June 30, 2026, included (i) a
For the three months ended June 30, 2026, the effective tax rate was increased by
The deferred credit balance as of September 30, 2026, was
__________________ |
|
(2) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure. |
Year-over-Year
Net Interest Income / Net Interest Margin
Net interest income was
Total interest income increased
Total interest expense increased
Net interest margin was
Provision for Credit Losses
The Company recorded a provision for credit losses of
Non-interest Income
Total non-interest income was
Core non-interest income(2) was
Non-interest Expense
Total non-interest expense was
Income Taxes
Income tax expense was
For the nine months ended September 30, 2026, the effective tax rate was (i) increased by
__________________ |
(2) Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure.
ASSET QUALITY |
The Company's ACL – Loans held for investment at amortized cost was
Net charge-offs were
Net charge-offs were
Non-performing assets were
Non-performing loans held for investment at amortized cost were
CAPITAL |
As of September 30, 2026, the Company’s and Bank’s Tier 1 leverage ratio were
As of September 30, 2026, the Company’s and Bank’s Common Equity Tier 1 ratio were
Total stockholders' equity was
As of September 30, 2026, the Company had:
-
available borrowing capacity of
$422.2 million Atlanta ;
-
available borrowing capacity of
$2.1 billion
-
available borrowing capacity of
$110.0 million
-
available-for-sale investment securities with a fair value of
$1.0 billion
CONFERENCE CALL AND WEBCAST |
The Company will host a conference call to discuss its third quarter 2026 financial results on October 29, 2026, at 8:00 a.m. Eastern Time. The live webcast will be available in the Events & Presentations section of the Company’s Investor Relations website at ir.forbrightbank.com.
To join by phone, please pre-register here at least 15 minutes before the call begins.
A replay and transcript will be available in the Events & Presentations section of the Company’s Investor Relations website at ir.forbrightbank.com approximately two hours after the conclusion of the call.
ABOUT FORBRIGHT, INC. |
Forbright, Inc. (Nasdaq: FRBT) is a financial holding company and the parent of FDIC-insured Forbright Bank, a modern financial services platform spanning nationwide middle-market lending, digital consumer banking, strategic advisory, and asset management services. Headquartered in
FORWARD-LOOKING STATEMENTS |
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include discussion of plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and statements of our beliefs concerning future events, business plans, objectives, expected operating results and the assumptions upon which those statements are based. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and are typically identified with words such as "see," “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan” or words or phrases of similar meaning. We caution that the forward-looking statements are based largely on our expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. Such forward-looking statements are based on various assumptions (some of which may be beyond our control) and are subject to risks and uncertainties, which change over time, and other factors which could cause actual results to differ materially from those currently anticipated. Such risks and uncertainties include, but are not limited to: economic conditions that impact the financial services industry and/or our business; our ability to manage our credit risk effectively and the potential deterioration of the business and economic conditions in our primary market areas; the composition of our loan portfolio; our ability to achieve organic loan and deposit growth and the composition of such growth; our ability to maintain our bank’s reputation; our ability to attract and retain skilled employees and manage changes in our management personnel; risks associated with unauthorized access, cyber-crime and other threats to data security; our ability to effectively compete with other financial services companies and the effects of competition in the financial services industry on our business; our ability to successfully develop and commercialize new or enhanced products and services; changes in the demand for our products and services; the sufficiency of our capital, including sources of capital and the extent to which we may be required to raise additional capital to meet our goals; the effectiveness of our risk management and internal disclosure controls and procedures; our access to sources of liquidity and capital to address our liquidity needs; the effects of the failure of any component of our business infrastructure provided by a third-party; any failure or interruption of our information and communications systems; the impact of, and changes in applicable laws, regulations and accounting standards and policies; the effects of geopolitical instability, including war, terrorist attacks, and man-made and natural disasters; our ability to keep pace with technological changes; the effects of problems encountered by other financial institutions; the ability to adapt to rapid technological changes, including advancements related to artificial intelligence ("AI"), the use of AI models in credit decisioning, customer service, and operations, including risks of model error, bias, regulatory scrutiny under fair lending laws, and third-party AI dependencies, digital banking platforms, and cybersecurity; advances and changes in technology, including AI, and the Company's ability to develop timely and competitive products and services and effectively manage related risks; risks related to our implementation of new lines of business, new products and services, new technologies, and expansion of our existing business opportunities; risks related to the development and use of AI; and other risks and uncertainties described under “Risk Factors” of our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026, and subsequent filings with the
All such factors are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors emerge from time to time, and it is not possible for management to predict all such factors or to assess the impact of each such factor on the Company. Any forward-looking statement speaks only as of the date on which such statement is made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made except as required by the federal securities laws.
If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, our actual results may vary materially from what we may have expressed or implied by these forward-looking statements. We caution that you should not place undue reliance on any of our forward-looking statements. Furthermore, new risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us.
FINANCIAL TABLES |
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
|
|
For the Three Months Ended |
||||||||||||||||
(dollars in thousands, except per share amounts) |
|
September 30, 2026 |
|
June 30, 2026 |
|
March 31, 2026 |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||
Loans held for investment |
|
$ |
110,628 |
|
$ |
98,522 |
|
|
$ |
93,164 |
|
|
$ |
101,360 |
|
|
$ |
107,825 |
Loans held-for-sale |
|
|
10,016 |
|
|
8,484 |
|
|
|
8,194 |
|
|
|
9,760 |
|
|
|
8,452 |
Deposits with banks |
|
|
12,991 |
|
|
7,252 |
|
|
|
7,582 |
|
|
|
6,419 |
|
|
|
7,606 |
Interest on investment securities |
|
|
13,052 |
|
|
14,158 |
|
|
|
14,099 |
|
|
|
14,364 |
|
|
|
15,098 |
Interest and dividends on other earning assets |
|
|
651 |
|
|
648 |
|
|
|
716 |
|
|
|
774 |
|
|
|
788 |
Total interest income |
|
|
147,338 |
|
|
129,064 |
|
|
|
123,755 |
|
|
|
132,677 |
|
|
|
139,769 |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits |
|
|
73,477 |
|
|
64,024 |
|
|
|
62,295 |
|
|
|
63,695 |
|
|
|
64,503 |
Subordinated debt, net |
|
|
1,909 |
|
|
1,895 |
|
|
|
1,902 |
|
|
|
1,929 |
|
|
|
1,951 |
Other borrowings |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
122 |
Total interest expense |
|
|
75,386 |
|
|
65,919 |
|
|
|
64,197 |
|
|
|
65,635 |
|
|
|
66,576 |
Net interest income |
|
|
71,952 |
|
|
63,145 |
|
|
|
59,558 |
|
|
|
67,042 |
|
|
|
73,193 |
Provision for credit losses |
|
|
1,499 |
|
|
5,899 |
|
|
|
3,473 |
|
|
|
6,700 |
|
|
|
4,762 |
Net interest income after provision for credit losses |
|
|
70,453 |
|
|
57,246 |
|
|
|
56,085 |
|
|
|
60,342 |
|
|
|
68,431 |
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
||||||||
Servicing income |
|
|
6,592 |
|
|
6,876 |
|
|
|
7,087 |
|
|
|
7,385 |
|
|
|
805 |
Investment advisory fees |
|
|
3,194 |
|
|
3,090 |
|
|
|
3,193 |
|
|
|
3,775 |
|
|
|
3,917 |
Fee income on loans |
|
|
2,116 |
|
|
2,252 |
|
|
|
2,003 |
|
|
|
2,530 |
|
|
|
2,006 |
Gains/(losses) on sales of loans and investment securities, net |
|
|
1,946 |
|
|
252 |
|
|
|
(34 |
) |
|
|
(281 |
) |
|
|
10,690 |
Unrealized gains/(losses) on loans and financing receivables, net |
|
|
1,263 |
|
|
(963 |
) |
|
|
(1,335 |
) |
|
|
(615 |
) |
|
|
4,443 |
Other non-interest income |
|
|
13,989 |
|
|
10,339 |
|
|
|
4,670 |
|
|
|
8,554 |
|
|
|
2,275 |
Total non-interest income |
|
|
29,100 |
|
|
21,846 |
|
|
|
15,584 |
|
|
|
21,348 |
|
|
|
24,136 |
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
|
36,422 |
|
|
33,407 |
|
|
|
31,642 |
|
|
|
33,417 |
|
|
|
33,255 |
Information technology |
|
|
7,705 |
|
|
7,581 |
|
|
|
7,540 |
|
|
|
7,449 |
|
|
|
6,573 |
Professional fees |
|
|
11,422 |
|
|
9,777 |
|
|
|
7,823 |
|
|
|
6,127 |
|
|
|
3,222 |
Loan administration and servicing |
|
|
6,917 |
|
|
5,500 |
|
|
|
4,125 |
|
|
|
4,376 |
|
|
|
1,363 |
Advertising and marketing |
|
|
1,688 |
|
|
2,720 |
|
|
|
2,304 |
|
|
|
931 |
|
|
|
774 |
FDIC insurance |
|
|
1,033 |
|
|
1,111 |
|
|
|
902 |
|
|
|
866 |
|
|
|
817 |
Occupancy expense |
|
|
1,812 |
|
|
1,466 |
|
|
|
1,122 |
|
|
|
1,111 |
|
|
|
1,079 |
Other non-interest expense |
|
|
3,381 |
|
|
4,214 |
|
|
|
2,999 |
|
|
|
3,930 |
|
|
|
3,419 |
Total non-interest expense |
|
|
70,380 |
|
|
65,776 |
|
|
|
58,457 |
|
|
|
58,207 |
|
|
|
50,502 |
Income before income taxes |
|
|
29,173 |
|
|
13,316 |
|
|
|
13,212 |
|
|
|
23,483 |
|
|
|
42,065 |
Income tax expense/(benefit) |
|
|
8,465 |
|
|
9,194 |
|
|
|
1,580 |
|
|
|
(6,111 |
) |
|
|
9,969 |
Net income |
|
|
20,708 |
|
|
4,122 |
|
|
|
11,632 |
|
|
|
29,594 |
|
|
|
32,096 |
Net income attributable to noncontrolling interest |
|
|
85 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
Net income attributable to the Company |
|
$ |
20,623 |
|
$ |
4,122 |
|
|
$ |
11,632 |
|
|
$ |
29,594 |
|
|
$ |
32,096 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Statements of Income - Metrics
(Unaudited)
|
|
For the Three Months Ended |
||||||||||||||||||
(dollars in thousands, except per share amounts) |
|
September 30, 2026 |
|
June 30,
|
|
March 31, 2026 |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||||
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings attributable to the Company per voting and non-voting common share |
|
$ |
0.42 |
|
|
$ |
0.10 |
|
|
$ |
0.29 |
|
|
$ |
0.73 |
|
|
$ |
0.80 |
|
Diluted earnings attributable to the Company per voting and non-voting common share |
|
$ |
0.41 |
|
|
$ |
0.09 |
|
|
$ |
0.27 |
|
|
$ |
0.72 |
|
|
$ |
0.78 |
|
Weighted-average shares used to compute earnings attributable to the Company per voting common share: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic |
|
|
30,048,936 |
|
|
|
21,175,037 |
|
|
|
19,063,817 |
|
|
|
19,032,287 |
|
|
|
19,029,795 |
|
Diluted |
|
|
31,806,389 |
|
|
|
23,498,322 |
|
|
|
21,188,692 |
|
|
|
20,066,576 |
|
|
|
20,039,544 |
|
Weighted-average shares used to compute earnings attributable to the Company per non-voting common share, basic and diluted |
|
|
19,100,718 |
|
|
|
21,014,378 |
|
|
|
21,242,551 |
|
|
|
21,242,551 |
|
|
|
21,242,551 |
|
Stockholders’ equity per total common share outstanding |
|
$ |
19.54 |
|
|
$ |
19.46 |
|
|
$ |
20.35 |
|
|
$ |
20.22 |
|
|
$ |
19.43 |
|
Tangible book value per total common share outstanding (Non-GAAP)(1) |
|
$ |
18.84 |
|
|
$ |
18.74 |
|
|
$ |
19.58 |
|
|
$ |
19.44 |
|
|
$ |
18.64 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Company: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 leverage ratio(2) |
|
|
9.80 |
% |
|
|
10.38 |
% |
|
|
8.92 |
% |
|
|
9.79 |
% |
|
|
8.82 |
% |
Common Equity Tier 1 to risk weighted-assets ratio(2) |
|
|
12.87 |
% |
|
|
12.97 |
% |
|
|
11.47 |
% |
|
|
12.72 |
% |
|
|
10.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average total assets(3) |
|
|
0.89 |
% |
|
|
0.20 |
% |
|
|
0.59 |
% |
|
|
1.52 |
% |
|
|
1.72 |
% |
Return on average stockholders’ equity(3) |
|
|
8.20 |
% |
|
|
1.89 |
% |
|
|
5.62 |
% |
|
|
14.52 |
% |
|
|
16.46 |
% |
Return on average tangible common equity(1), (3) |
|
|
8.68 |
% |
|
|
2.19 |
% |
|
|
5.95 |
% |
|
|
15.25 |
% |
|
|
17.32 |
% |
Yield on earning assets(3) |
|
|
6.51 |
% |
|
|
6.52 |
% |
|
|
6.44 |
% |
|
|
7.03 |
% |
|
|
7.71 |
% |
Yield on interest-bearing liabilities(3) |
|
|
3.88 |
% |
|
|
3.87 |
% |
|
|
3.89 |
% |
|
|
4.05 |
% |
|
|
4.24 |
% |
Spread(4) |
|
|
2.63 |
% |
|
|
2.65 |
% |
|
|
2.55 |
% |
|
|
2.98 |
% |
|
|
3.47 |
% |
Net interest margin(5) |
|
|
3.18 |
% |
|
|
3.19 |
% |
|
|
3.10 |
% |
|
|
3.55 |
% |
|
|
4.04 |
% |
Efficiency ratio(6) |
|
|
69.65 |
% |
|
|
77.39 |
% |
|
|
77.80 |
% |
|
|
65.85 |
% |
|
|
51.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CREDIT QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-performing assets to total assets |
|
|
0.78 |
% |
|
|
1.10 |
% |
|
|
1.14 |
% |
|
|
1.06 |
% |
|
|
0.55 |
% |
Non-performing loans to total loans held for investment at amortized cost |
|
|
0.91 |
% |
|
|
1.30 |
% |
|
|
1.38 |
% |
|
|
1.30 |
% |
|
|
0.60 |
% |
ACL - Loans to total loans at amortized cost at period end |
|
|
0.91 |
% |
|
|
0.98 |
% |
|
|
0.98 |
% |
|
|
1.01 |
% |
|
|
1.03 |
% |
Net loan charge-offs to average total loans held for investment at amortized cost(3) |
|
|
(0.08 |
)% |
|
|
(0.20 |
)% |
|
|
(0.32 |
)% |
|
|
(0.41 |
)% |
|
|
(0.16 |
)% |
__________________ |
(1) |
Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure. |
|
(2) |
Regulatory capital ratios as of September 30, 2026 are preliminary pending filing of regulatory reports. |
|
(3) |
Annualized. |
|
(4) |
Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. |
|
(5) |
Net interest margin is computed by dividing annualized net interest income by total average interest-earning assets. |
|
(6) |
Efficiency ratio is calculated by dividing non-interest expense by total revenue, which equals the sum of net interest income and non-interest income. |
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands) |
|
September 30, 2026 |
|
June 30, 2026 |
|
March 31, 2026 |
|
December 31, 2025 |
|
September 30, 2025 |
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash, due from banks and restricted cash |
|
$ |
37,685 |
|
|
$ |
26,524 |
|
|
$ |
25,280 |
|
|
$ |
18,241 |
|
|
$ |
20,261 |
|
Interest-bearing deposits with banks |
|
|
811,274 |
|
|
|
808,192 |
|
|
|
840,856 |
|
|
|
630,474 |
|
|
|
609,955 |
|
Cash, cash equivalents and restricted cash |
|
|
848,959 |
|
|
|
834,716 |
|
|
|
866,136 |
|
|
|
648,715 |
|
|
|
630,216 |
|
Investment securities available-for-sale, at fair value |
|
|
1,014,605 |
|
|
|
1,210,665 |
|
|
|
1,235,599 |
|
|
|
1,254,887 |
|
|
|
1,257,175 |
|
Investment securities held-to-maturity, at amortized cost(1) |
|
|
48,489 |
|
|
|
48,634 |
|
|
|
48,834 |
|
|
|
48,834 |
|
|
|
52,081 |
|
Loans held-for-sale |
|
|
476,036 |
|
|
|
465,474 |
|
|
|
407,594 |
|
|
|
379,662 |
|
|
|
370,512 |
|
Loans held for investment, at fair value |
|
|
2,855 |
|
|
|
3,481 |
|
|
|
4,555 |
|
|
|
4,645 |
|
|
|
5,105 |
|
Loans held for investment, at amortized cost |
|
|
6,163,716 |
|
|
|
5,595,872 |
|
|
|
5,376,537 |
|
|
|
5,222,234 |
|
|
|
4,987,894 |
|
Allowance for credit losses - loans |
|
|
(55,833 |
) |
|
|
(54,621 |
) |
|
|
(52,794 |
) |
|
|
(52,986 |
) |
|
|
(51,430 |
) |
Net loans held for investment, at amortized cost |
|
|
6,107,883 |
|
|
|
5,541,251 |
|
|
|
5,323,743 |
|
|
|
5,169,248 |
|
|
|
4,936,464 |
|
Other earning assets, net |
|
|
50,470 |
|
|
|
50,479 |
|
|
|
50,690 |
|
|
|
55,928 |
|
|
|
56,014 |
|
Deferred tax asset, net |
|
|
138,276 |
|
|
|
145,269 |
|
|
|
152,963 |
|
|
|
153,314 |
|
|
|
178,205 |
|
Accrued interest receivable |
|
|
49,071 |
|
|
|
46,445 |
|
|
|
45,369 |
|
|
|
55,155 |
|
|
|
49,037 |
|
Premises and equipment, net |
|
|
41,990 |
|
|
|
47,877 |
|
|
|
29,763 |
|
|
|
30,763 |
|
|
|
31,952 |
|
Goodwill and other intangible assets, net |
|
|
35,452 |
|
|
|
35,964 |
|
|
|
31,402 |
|
|
|
31,685 |
|
|
|
32,026 |
|
Other assets |
|
|
83,427 |
|
|
|
75,249 |
|
|
|
36,412 |
|
|
|
56,470 |
|
|
|
89,790 |
|
Assets held-for-sale |
|
|
726,837 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total assets |
|
$ |
9,624,350 |
|
|
$ |
8,505,504 |
|
|
$ |
8,233,060 |
|
|
$ |
7,889,306 |
|
|
$ |
7,688,577 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest-bearing deposits |
|
$ |
362,080 |
|
|
$ |
435,065 |
|
|
$ |
473,153 |
|
|
$ |
372,444 |
|
|
$ |
355,684 |
|
Interest-bearing deposits |
|
|
7,248,590 |
|
|
|
6,830,770 |
|
|
|
6,665,055 |
|
|
|
6,405,471 |
|
|
|
6,145,833 |
|
Total deposits |
|
|
7,610,670 |
|
|
|
7,265,835 |
|
|
|
7,138,208 |
|
|
|
6,777,915 |
|
|
|
6,501,517 |
|
Subordinated debt, net |
|
|
151,270 |
|
|
|
151,181 |
|
|
|
151,092 |
|
|
|
151,003 |
|
|
|
150,914 |
|
Other borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
90,000 |
|
Total borrowed funds |
|
|
151,270 |
|
|
|
151,181 |
|
|
|
151,092 |
|
|
|
151,003 |
|
|
|
240,914 |
|
Other liabilities |
|
|
118,641 |
|
|
|
121,325 |
|
|
|
112,565 |
|
|
|
137,945 |
|
|
|
156,373 |
|
Liabilities held-for-sale |
|
|
749,135 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total liabilities |
|
|
8,629,716 |
|
|
|
7,538,341 |
|
|
|
7,401,865 |
|
|
|
7,066,863 |
|
|
|
6,898,804 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Off-balance sheet commitments |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest |
|
|
2,885 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Common stock: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Voting common stock |
|
|
33 |
|
|
|
29 |
|
|
|
20 |
|
|
|
20 |
|
|
|
20 |
|
Non-voting common stock |
|
|
18 |
|
|
|
21 |
|
|
|
21 |
|
|
|
21 |
|
|
|
21 |
|
Additional paid-in capital |
|
|
650,070 |
|
|
|
628,499 |
|
|
|
493,074 |
|
|
|
490,550 |
|
|
|
488,320 |
|
Retained earnings |
|
|
365,205 |
|
|
|
344,582 |
|
|
|
340,460 |
|
|
|
328,828 |
|
|
|
299,234 |
|
Accumulated other comprehensive (loss)/income |
|
|
(23,577 |
) |
|
|
(5,968 |
) |
|
|
(2,380 |
) |
|
|
3,024 |
|
|
|
2,178 |
|
Total stockholders’ equity |
|
|
991,749 |
|
|
|
967,163 |
|
|
|
831,195 |
|
|
|
822,443 |
|
|
|
789,773 |
|
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity |
|
$ |
9,624,350 |
|
|
$ |
8,505,504 |
|
|
$ |
8,233,060 |
|
|
$ |
7,889,306 |
|
|
$ |
7,688,577 |
|
__________________ |
(1) |
Net of allowance for credit losses - investment securities of |
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
|
|
For the Nine Months Ended |
|||||
(dollars in thousands, except per share amounts) |
|
September
|
|
September
|
|||
INTEREST INCOME |
|
|
|
|
|||
Loans held for investment |
|
$ |
302,314 |
|
|
$ |
283,584 |
Loans held-for-sale |
|
|
26,694 |
|
|
|
28,274 |
Deposits with banks |
|
|
27,825 |
|
|
|
22,182 |
Interest on investment securities |
|
|
41,309 |
|
|
|
47,359 |
Interest and dividends on other earning assets |
|
|
2,015 |
|
|
|
2,564 |
Total interest income |
|
|
400,157 |
|
|
|
383,963 |
INTEREST EXPENSE |
|
|
|
|
|||
Deposits |
|
|
199,796 |
|
|
|
179,708 |
Subordinated debt, net |
|
|
5,706 |
|
|
|
6,893 |
Other borrowings |
|
|
— |
|
|
|
1,388 |
Total interest expense |
|
|
205,502 |
|
|
|
187,989 |
Net interest income |
|
|
194,655 |
|
|
|
195,974 |
Provision for credit losses |
|
|
10,871 |
|
|
|
17,311 |
Net interest income after provision for credit losses |
|
|
183,784 |
|
|
|
178,663 |
NON-INTEREST INCOME |
|
|
|
|
|||
Servicing income |
|
|
20,555 |
|
|
|
805 |
Investment advisory fees |
|
|
9,477 |
|
|
|
12,415 |
Fee income on loans |
|
|
6,371 |
|
|
|
5,837 |
Gains on sales of loans and investment securities, net |
|
|
2,164 |
|
|
|
12,860 |
Unrealized (losses)/gains on loans and financing receivables, net |
|
|
(1,035 |
) |
|
|
7,189 |
Other non-interest income |
|
|
28,998 |
|
|
|
10,322 |
Total non-interest income |
|
|
66,530 |
|
|
|
49,428 |
NON-INTEREST EXPENSE |
|
|
|
|
|||
Compensation and benefits |
|
|
101,471 |
|
|
|
93,695 |
Information technology |
|
|
22,826 |
|
|
|
19,469 |
Professional fees |
|
|
29,022 |
|
|
|
9,764 |
Loan administration and servicing |
|
|
16,542 |
|
|
|
4,119 |
Advertising and marketing |
|
|
6,712 |
|
|
|
5,313 |
FDIC insurance |
|
|
3,046 |
|
|
|
4,166 |
Occupancy expense |
|
|
4,400 |
|
|
|
3,576 |
Other non-interest expense |
|
|
10,594 |
|
|
|
10,315 |
Total non-interest expense |
|
|
194,613 |
|
|
|
150,417 |
Income before income taxes |
|
|
55,701 |
|
|
|
77,674 |
Income tax expense |
|
|
19,239 |
|
|
|
19,342 |
Net income |
|
|
36,462 |
|
|
|
58,332 |
Net income attributable to noncontrolling interest |
|
|
85 |
|
|
|
— |
Net income attributable to the Company |
|
$ |
36,377 |
|
|
$ |
58,332 |
|
|
|
|
|
|||
FORBRIGHT, INC. AND SUBSIDIARIES
Consolidated Statements of Income - Metrics
(Unaudited)
|
|
For the Nine Months Ended |
||||||
(dollars in thousands, except per share amounts) |
|
September
|
|
September
|
||||
PER SHARE DATA |
|
|
|
|
||||
Basic earnings attributable to the Company per voting common share |
|
$ |
0.86 |
|
|
$ |
1.45 |
|
Basic earnings attributable to the Company per non-voting common share |
|
$ |
0.79 |
|
|
$ |
1.45 |
|
Diluted earnings attributable to the Company per voting common share |
|
$ |
0.83 |
|
|
$ |
1.41 |
|
Diluted earnings attributable to the Company per non-voting common share |
|
$ |
0.76 |
|
|
$ |
1.41 |
|
Weighted-average shares used to compute earnings attributable to the Company per voting common share: |
|
|
|
|
||||
Basic |
|
|
23,466,079 |
|
|
|
19,004,185 |
|
Diluted |
|
|
25,066,853 |
|
|
|
20,116,479 |
|
Weighted-average shares used to compute earnings attributable to the Company per non-voting common share, basic and diluted |
|
|
20,444,703 |
|
|
|
21,242,551 |
|
|
|
|
|
|
||||
PERFORMANCE RATIOS |
|
|
|
|
||||
Return on average total assets(1) |
|
|
0.57 |
% |
|
|
1.11 |
% |
Return on average stockholders’ equity(1) |
|
|
5.38 |
% |
|
|
10.31 |
% |
Return on average tangible common equity(1), (2) |
|
|
5.76 |
% |
|
|
10.91 |
% |
Yield on earning assets(1) |
|
|
6.49 |
% |
|
|
7.51 |
% |
Yield on interest-bearing liabilities(1) |
|
|
3.88 |
% |
|
|
4.25 |
% |
Spread(3) |
|
|
2.61 |
% |
|
|
3.26 |
% |
Net interest margin(4) |
|
|
3.16 |
% |
|
|
3.83 |
% |
Efficiency ratio(5) |
|
|
74.51 |
% |
|
|
61.29 |
% |
__________________ |
(1) |
Non-GAAP financial measure. See "Non-GAAP Financial Measures" section of this press release for a reconciliation to the most directly comparable GAAP measure. |
||
(2) |
Annualized. |
||
(3) |
Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. |
||
(4) |
Net interest margin is computed by dividing annualized net interest income by total average interest-earning assets. |
||
(5) |
Efficiency ratio is calculated by dividing non-interest expense by total revenue, which equals the sum of net interest income and non-interest income. |
FORBRIGHT, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
|
|
For the Three Months Ended |
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
September 30, 2026 |
|
June 30, 2026 |
|
Change Due To: |
|
|
||||||||||||||||||||||||
(dollars in thousands) |
|
Average Balance |
|
Interest Income/
|
|
Average Yields Earned/ Rates Paid(1) |
|
Average Balance |
|
Interest Income/
|
|
Average Yields Earned/ Rates Paid(1) |
|
Volume and Days |
|
Yield/ Rate |
|
Total Change |
||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans held for investment |
|
$ |
5,915,470 |
|
|
$ |
110,628 |
|
7.42 |
% |
|
$ |
5,409,608 |
|
|
$ |
98,522 |
|
7.30 |
% |
|
$ |
10,397 |
|
|
$ |
1,709 |
|
|
$ |
12,106 |
|
Total loans held-for-sale |
|
|
478,158 |
|
|
|
10,016 |
|
8.31 |
% |
|
|
427,940 |
|
|
|
8,484 |
|
7.95 |
% |
|
|
1,102 |
|
|
|
430 |
|
|
|
1,532 |
|
Total loans |
|
|
6,393,628 |
|
|
|
120,644 |
|
7.49 |
% |
|
|
5,837,548 |
|
|
|
107,006 |
|
7.35 |
% |
|
|
11,499 |
|
|
|
2,139 |
|
|
|
13,638 |
|
Total investment securities |
|
|
1,150,488 |
|
|
|
13,052 |
|
4.50 |
% |
|
|
1,263,848 |
|
|
|
14,158 |
|
4.49 |
% |
|
|
(1,128 |
) |
|
|
22 |
|
|
|
(1,106 |
) |
Interest-bearing deposits with banks(2) |
|
|
1,380,609 |
|
|
|
12,991 |
|
3.73 |
% |
|
|
787,320 |
|
|
|
7,252 |
|
3.69 |
% |
|
|
5,603 |
|
|
|
136 |
|
|
|
5,739 |
|
Other earnings assets |
|
|
50,570 |
|
|
|
651 |
|
5.11 |
% |
|
|
50,661 |
|
|
|
648 |
|
5.13 |
% |
|
|
6 |
|
|
|
(3 |
) |
|
|
3 |
|
Total interest-earning assets |
|
|
8,975,295 |
|
|
|
147,338 |
|
6.51 |
% |
|
|
7,939,377 |
|
|
|
129,064 |
|
6.52 |
% |
|
|
15,980 |
|
|
|
2,294 |
|
|
|
18,274 |
|
Allowance for credit losses |
|
|
(54,165 |
) |
|
|
|
|
|
|
(53,328 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Other assets |
|
|
322,604 |
|
|
|
|
|
|
|
336,948 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
|
$ |
9,243,734 |
|
|
|
|
|
|
$ |
8,222,997 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities, redeemable noncontrolling interest, and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing demand deposits(2) |
|
$ |
279,995 |
|
|
$ |
2,459 |
|
3.48 |
% |
|
$ |
283,305 |
|
|
$ |
2,442 |
|
3.46 |
% |
|
$ |
(2 |
) |
|
$ |
19 |
|
|
$ |
17 |
|
Money market deposits(2) |
|
|
1,397,681 |
|
|
|
13,271 |
|
3.77 |
% |
|
|
1,403,392 |
|
|
|
13,138 |
|
3.75 |
% |
|
|
90 |
|
|
|
43 |
|
|
|
133 |
|
Savings deposits(2) |
|
|
4,594,382 |
|
|
|
44,597 |
|
3.85 |
% |
|
|
3,680,352 |
|
|
|
34,725 |
|
3.78 |
% |
|
|
9,100 |
|
|
|
772 |
|
|
|
9,872 |
|
Time deposits(2) |
|
|
1,276,449 |
|
|
|
13,150 |
|
4.09 |
% |
|
|
1,310,156 |
|
|
|
13,719 |
|
4.20 |
% |
|
|
(205 |
) |
|
|
(364 |
) |
|
|
(569 |
) |
Total interest-bearing deposits(2) |
|
|
7,548,507 |
|
|
|
73,477 |
|
3.86 |
% |
|
|
6,677,205 |
|
|
|
64,024 |
|
3.85 |
% |
|
|
8,983 |
|
|
|
470 |
|
|
|
9,453 |
|
Subordinated debt, net |
|
|
151,211 |
|
|
|
1,909 |
|
5.01 |
% |
|
|
151,123 |
|
|
|
1,895 |
|
5.03 |
% |
|
|
21 |
|
|
|
(7 |
) |
|
|
14 |
|
Total interest-bearing liabilities |
|
|
7,699,718 |
|
|
|
75,386 |
|
3.88 |
% |
|
|
6,828,328 |
|
|
|
65,919 |
|
3.87 |
% |
|
|
9,004 |
|
|
|
463 |
|
|
|
9,467 |
|
Non-interest-bearing demand deposits(2) |
|
|
435,418 |
|
|
|
|
|
|
|
408,649 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other liabilities |
|
|
110,733 |
|
|
|
|
|
|
|
113,261 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities |
|
|
8,245,869 |
|
|
|
|
|
|
|
7,350,238 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest |
|
|
65 |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity |
|
|
997,800 |
|
|
|
|
|
|
|
872,759 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity |
|
$ |
9,243,734 |
|
|
|
|
|
|
$ |
8,222,997 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income and spread(3) |
|
|
|
$ |
71,952 |
|
2.63 |
% |
|
|
|
$ |
63,145 |
|
2.65 |
% |
|
$ |
6,976 |
|
|
$ |
1,831 |
|
|
$ |
8,807 |
|
||||
Net interest margin(4) |
|
|
|
|
|
3.18 |
% |
|
|
|
|
|
3.19 |
% |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total deposits(5) |
|
$ |
7,983,925 |
|
|
$ |
73,477 |
|
3.65 |
% |
|
$ |
7,085,854 |
|
|
$ |
64,024 |
|
3.62 |
% |
|
|
|
|
|
|
||||||
Total funds(6) |
|
$ |
8,135,136 |
|
|
$ |
75,386 |
|
3.68 |
% |
|
$ |
7,236,977 |
|
|
$ |
65,919 |
|
3.65 |
% |
|
|
|
|
|
|
||||||
__________________ |
(1) |
Annualized. |
|
(2) |
Includes balances held-for-sale. |
|
(3) |
Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. |
|
(4) |
Net interest margin is computed by dividing annualized net interest income by total average interest-earning assets. |
|
(5) |
Total deposits is the sum of interest-bearing deposits and non-interest-bearing demand deposits. Cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits. |
|
(6) |
Total funds is the sum of total interest-bearing liabilities and non-interest-bearing demand deposits. Cost of total funds is calculated as annualized total interest expense divided by average total funds. |
FORBRIGHT, INC. AND SUBSIDIARIES
Average Balance Sheets
(Unaudited)
|
|
For the Nine Months Ended |
|
|
|
|
|
|
||||||||||||||||||||||||
|
|
September 30, 2026 |
|
September 30, 2025 |
|
Change Due To: |
|
|
||||||||||||||||||||||||
(dollars in thousands) |
|
Average Balance |
|
Interest Income/
|
|
Average Yields Earned/ Rates Paid(1) |
|
Average Balance |
|
Interest Income/
|
|
Average Yields Earned/ Rates Paid(1) |
|
Volume |
|
Yield/ Rate |
|
Total Change |
||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total loans held for investment |
|
$ |
5,515,747 |
|
|
$ |
302,314 |
|
7.33 |
% |
|
$ |
4,399,127 |
|
|
$ |
283,584 |
|
8.62 |
% |
|
$ |
71,981 |
|
|
$ |
(53,251 |
) |
|
$ |
18,730 |
|
Total loans held-for-sale |
|
|
436,071 |
|
|
|
26,694 |
|
8.18 |
% |
|
|
331,859 |
|
|
|
28,274 |
|
11.39 |
% |
|
|
8,879 |
|
|
|
(10,459 |
) |
|
|
(1,580 |
) |
Total loans |
|
|
5,951,818 |
|
|
|
329,008 |
|
7.39 |
% |
|
|
4,730,986 |
|
|
|
311,858 |
|
8.81 |
% |
|
|
80,860 |
|
|
|
(63,710 |
) |
|
|
17,150 |
|
Total investment securities |
|
|
1,234,738 |
|
|
|
41,309 |
|
4.47 |
% |
|
|
1,382,032 |
|
|
|
47,359 |
|
4.58 |
% |
|
|
(5,047 |
) |
|
|
(1,003 |
) |
|
|
(6,050 |
) |
Interest-bearing deposits with banks(2) |
|
|
1,003,361 |
|
|
|
27,825 |
|
3.71 |
% |
|
|
669,160 |
|
|
|
22,182 |
|
4.43 |
% |
|
|
11,079 |
|
|
|
(5,436 |
) |
|
|
5,643 |
|
Other earnings assets |
|
|
52,066 |
|
|
|
2,015 |
|
5.17 |
% |
|
|
57,639 |
|
|
|
2,564 |
|
5.95 |
% |
|
|
(248 |
) |
|
|
(301 |
) |
|
|
(549 |
) |
Total interest-earning assets |
|
|
8,241,983 |
|
|
|
400,157 |
|
6.49 |
% |
|
|
6,839,817 |
|
|
|
383,963 |
|
7.51 |
% |
|
|
86,644 |
|
|
|
(70,450 |
) |
|
|
16,194 |
|
Allowance for credit losses |
|
|
(53,399 |
) |
|
|
|
|
|
|
(45,149 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Other assets |
|
|
312,281 |
|
|
|
|
|
|
|
225,901 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
|
$ |
8,500,865 |
|
|
|
|
|
|
$ |
7,020,569 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities, redeemable noncontrolling interest, and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing demand deposits(2) |
|
$ |
281,426 |
|
|
$ |
7,334 |
|
3.48 |
% |
|
$ |
296,158 |
|
|
$ |
8,306 |
|
3.75 |
% |
|
$ |
(413 |
) |
|
$ |
(559 |
) |
|
$ |
(972 |
) |
Money market deposits(2) |
|
|
1,374,655 |
|
|
|
38,598 |
|
3.75 |
% |
|
|
862,578 |
|
|
|
25,019 |
|
3.88 |
% |
|
|
14,853 |
|
|
|
(1,274 |
) |
|
|
13,579 |
|
Savings deposits(2) |
|
|
3,941,829 |
|
|
|
112,430 |
|
3.81 |
% |
|
|
2,787,657 |
|
|
|
87,607 |
|
4.20 |
% |
|
|
36,272 |
|
|
|
(11,449 |
) |
|
|
24,823 |
|
Time deposits(2) |
|
|
1,327,777 |
|
|
|
41,434 |
|
4.17 |
% |
|
|
1,765,116 |
|
|
|
58,776 |
|
4.45 |
% |
|
|
(14,563 |
) |
|
|
(2,779 |
) |
|
|
(17,342 |
) |
Total interest-bearing deposits(2) |
|
|
6,925,687 |
|
|
|
199,796 |
|
3.86 |
% |
|
|
5,711,509 |
|
|
|
179,708 |
|
4.21 |
% |
|
|
36,149 |
|
|
|
(16,061 |
) |
|
|
20,088 |
|
Subordinated debt, net |
|
|
151,123 |
|
|
|
5,706 |
|
5.05 |
% |
|
|
166,524 |
|
|
|
6,893 |
|
5.53 |
% |
|
|
(637 |
) |
|
|
(550 |
) |
|
|
(1,187 |
) |
Other borrowings |
|
|
— |
|
|
|
— |
|
— |
% |
|
|
41,342 |
|
|
|
1,388 |
|
4.49 |
% |
|
|
(1,388 |
) |
|
|
— |
|
|
|
(1,388 |
) |
Total interest-bearing liabilities |
|
|
7,076,810 |
|
|
|
205,502 |
|
3.88 |
% |
|
|
5,919,375 |
|
|
|
187,989 |
|
4.25 |
% |
|
|
34,124 |
|
|
|
(16,611 |
) |
|
|
17,513 |
|
Non-interest-bearing demand deposits(2) |
|
|
405,776 |
|
|
|
|
|
|
|
269,594 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other liabilities |
|
|
114,499 |
|
|
|
|
|
|
|
74,919 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities |
|
|
7,597,085 |
|
|
|
|
|
|
|
6,263,888 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Redeemable noncontrolling interest |
|
|
22 |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity |
|
|
903,758 |
|
|
|
|
|
|
|
756,681 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity |
|
$ |
8,500,865 |
|
|
|
|
|
|
$ |
7,020,569 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net interest income and spread(3) |
|
|
|
$ |
194,655 |
|
2.61 |
% |
|
|
|
$ |
195,974 |
|
3.26 |
% |
|
$ |
52,520 |
|
|
$ |
(53,839 |
) |
|
$ |
(1,319 |
) |
||||
Net interest margin(4) |
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
3.83 |
% |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total deposits(5) |
|
$ |
7,331,463 |
|
|
$ |
199,796 |
|
3.64 |
% |
|
$ |
5,981,103 |
|
|
$ |
179,708 |
|
4.02 |
% |
|
|
|
|
|
|
||||||
Total funds(6) |
|
$ |
7,482,586 |
|
|
$ |
205,502 |
|
3.67 |
% |
|
$ |
6,188,969 |
|
|
$ |
187,989 |
|
4.06 |
% |
|
|
|
|
|
|
||||||
__________________ |
(1) |
Annualized. |
|
(2) |
Includes balances held-for-sale. |
|
(3) |
Spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities. |
|
(4) |
Net interest margin is computed by dividing annualized net interest income by total average interest-earning assets. |
|
(5) |
Total deposits is the sum of interest-bearing deposits and non-interest-bearing demand deposits. Cost of total deposits is calculated as annualized interest expense on total deposits divided by average total deposits. |
|
(6) |
Total funds is the sum of total interest-bearing liabilities and non-interest-bearing demand deposits. Cost of total funds is calculated as annualized total interest expense divided by average total funds. |
FORBRIGHT, INC. AND SUBSIDIARIES
Loans Held for Investment at Amortized Cost
(Unaudited)
|
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
||||||||||||
(dollars in thousands) |
|
Amount |
|
% of total loans |
|
Amount |
|
% of total loans |
|
Amount |
|
% of total loans |
||||||
Commercial Real Estate |
|
$ |
3,055,047 |
|
49.6 |
% |
|
$ |
2,849,478 |
|
50.9 |
% |
|
$ |
2,528,996 |
|
48.4 |
% |
Commercial and Industrial |
|
|
2,911,601 |
|
47.2 |
% |
|
|
2,541,275 |
|
45.4 |
% |
|
|
2,475,549 |
|
47.4 |
% |
Consumer |
|
|
197,068 |
|
3.2 |
% |
|
|
205,119 |
|
3.7 |
% |
|
|
217,689 |
|
4.2 |
% |
Total loans held for investment at amortized cost |
|
$ |
6,163,716 |
|
100.0 |
% |
|
$ |
5,595,872 |
|
100.0 |
% |
|
$ |
5,222,234 |
|
100.0 |
% |
FORBRIGHT, INC. AND SUBSIDIARIES
Allowance for Credit Losses - Loans Held for Investment at Amortized Cost
(Unaudited)
|
|
As of and For the Three Months Ended |
|
As of and For the Nine Months Ended |
||||||||||||
(dollars in thousands) |
|
September 30, 2026 |
|
June 30, 2026 |
|
September
|
|
September
|
||||||||
Average loans held for investment outstanding, at amortized cost |
|
$ |
5,912,148 |
|
|
$ |
5,405,685 |
|
|
$ |
5,511,752 |
|
|
$ |
4,392,511 |
|
Total loans held for investment outstanding, at amortized cost at end of period |
|
$ |
6,163,716 |
|
|
$ |
5,595,872 |
|
|
$ |
6,163,716 |
|
|
$ |
4,987,894 |
|
|
|
|
|
|
|
|
|
|
||||||||
ACL - Loans: |
|
|
|
|
|
|
|
|
||||||||
Beginning of period |
|
$ |
54,621 |
|
|
$ |
52,794 |
|
|
$ |
52,986 |
|
|
$ |
42,294 |
|
Provision for credit losses on loans |
|
|
879 |
|
|
|
4,521 |
|
|
|
9,267 |
|
|
|
16,569 |
|
Provision for credit losses on loan transfers from loans held-for-sale |
|
|
1,579 |
|
|
|
— |
|
|
|
1,596 |
|
|
|
97 |
|
Loan charge-offs: |
|
|
|
|
|
|
|
|
||||||||
Commercial Real Estate |
|
|
(472 |
) |
|
|
— |
|
|
|
(472 |
) |
|
|
— |
|
Commercial and Industrial |
|
|
— |
|
|
|
(1,736 |
) |
|
|
(4,566 |
) |
|
|
(4,252 |
) |
Consumer |
|
|
(1,444 |
) |
|
|
(1,353 |
) |
|
|
(4,854 |
) |
|
|
(5,409 |
) |
Total charge-offs |
|
|
(1,916 |
) |
|
|
(3,089 |
) |
|
|
(9,892 |
) |
|
|
(9,661 |
) |
Loan recoveries: |
|
|
|
|
|
|
|
|
||||||||
Commercial Real Estate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Commercial and Industrial |
|
|
339 |
|
|
|
131 |
|
|
|
1,012 |
|
|
|
1,105 |
|
Consumer |
|
|
331 |
|
|
|
264 |
|
|
|
864 |
|
|
|
1,026 |
|
Total recoveries |
|
|
670 |
|
|
|
395 |
|
|
|
1,876 |
|
|
|
2,131 |
|
Net charge-offs |
|
|
(1,246 |
) |
|
|
(2,694 |
) |
|
|
(8,016 |
) |
|
|
(7,530 |
) |
End of period |
|
$ |
55,833 |
|
|
$ |
54,621 |
|
|
$ |
55,833 |
|
|
$ |
51,430 |
|
|
|
|
|
|
|
|
|
|
||||||||
Ratio of ACL - Loans to total loans at amortized cost at period end |
|
|
0.91 |
% |
|
|
0.98 |
% |
|
|
0.91 |
% |
|
|
1.03 |
% |
Ratio of net charge-offs to average total loans at amortized cost |
|
|
(0.08 |
)% |
|
|
(0.20 |
)% |
|
|
(0.19 |
)% |
|
|
(0.23 |
)% |
FORBRIGHT, INC. AND SUBSIDIARIES
Non-performing Assets and Non-performing Loans
(Unaudited)
(dollars in thousands) |
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
||||||
NON-PERFORMING ASSETS |
|
|
|
|
|
|
||||||
Total non-accrual loans: |
|
|
|
|
|
|
||||||
Commercial Real Estate |
|
$ |
52,544 |
|
|
$ |
67,312 |
|
|
$ |
60,360 |
|
Commercial and Industrial |
|
|
12,368 |
|
|
|
19,498 |
|
|
|
11,798 |
|
Consumer |
|
|
1,189 |
|
|
|
1,407 |
|
|
|
1,857 |
|
Total non-accrual loans |
|
|
66,101 |
|
|
|
88,217 |
|
|
|
74,015 |
|
Accruing loans 90 days or more past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Non-performing investment securities |
|
|
839 |
|
|
|
839 |
|
|
|
839 |
|
Non-performing financing receivables |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other real estate owned |
|
|
7,934 |
|
|
|
4,642 |
|
|
|
8,729 |
|
Total non-performing assets |
|
$ |
74,874 |
|
|
$ |
93,698 |
|
|
$ |
83,583 |
|
|
|
|
|
|
|
|
||||||
Total non-accrual loans as a percentage of total loans |
|
|
1.00 |
% |
|
|
1.45 |
% |
|
|
1.32 |
% |
Total non-performing investment securities as a percentage of total investment securities |
|
|
0.08 |
% |
|
|
0.07 |
% |
|
|
0.06 |
% |
Total non-performing financing receivables as a percentage of total financing receivables |
|
|
— |
% |
|
|
— |
% |
|
|
— |
% |
Total non-performing assets as a percentage of total assets |
|
|
0.78 |
% |
|
|
1.10 |
% |
|
|
1.06 |
% |
|
|
|
|
|
|
|
||||||
NON-PERFORMING LOANS HELD FOR INVESTMENT AT AMORTIZED COST |
|
|
|
|
|
|
||||||
Total non-accrual loans held for investment at amortized cost: |
|
|
|
|
|
|
||||||
Commercial Real Estate |
|
$ |
52,544 |
|
|
$ |
67,312 |
|
|
$ |
60,361 |
|
Commercial and Industrial |
|
|
2,473 |
|
|
|
3,752 |
|
|
|
5,484 |
|
Consumer |
|
|
1,189 |
|
|
|
1,407 |
|
|
|
1,857 |
|
Total non-accrual loans |
|
|
56,206 |
|
|
|
72,471 |
|
|
|
67,702 |
|
Accruing loans 90 days or more past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total non-performing loans held for investment at amortized cost |
|
$ |
56,206 |
|
|
$ |
72,471 |
|
|
$ |
67,702 |
|
|
|
|
|
|
|
|
||||||
Total non-accrual loans held for investment at amortized cost to total loans held for investment at amortized cost |
|
|
0.91 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
Total ACL - Loans to total non-accrual loans held for investment at amortized cost |
|
|
99.34 |
% |
|
|
75.37 |
% |
|
|
78.26 |
% |
Non-performing loans held for investment at amortized cost to total loans held for investment at amortized cost |
|
|
0.91 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
FORBRIGHT, INC. AND SUBSIDIARIES
Investment Securities
(Unaudited)
|
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
||||||||||||
(dollars in thousands) |
|
Amount(1) |
|
% of total securities |
|
Amount(1) |
|
% of total securities |
|
Amount(1) |
|
% of total securities |
||||||
Available-for-sale securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
$ |
515,996 |
|
48.6 |
% |
|
$ |
695,844 |
|
55.3 |
% |
|
$ |
958,347 |
|
73.4 |
% |
Residential agency mortgage-backed |
|
|
294,559 |
|
27.7 |
% |
|
|
312,973 |
|
24.8 |
% |
|
|
139,077 |
|
10.7 |
% |
Commercial agency mortgage-backed |
|
|
186,180 |
|
17.5 |
% |
|
|
182,856 |
|
14.5 |
% |
|
|
136,070 |
|
10.4 |
% |
Municipal bonds |
|
|
7,937 |
|
0.7 |
% |
|
|
8,635 |
|
0.7 |
% |
|
|
8,635 |
|
0.7 |
% |
Other |
|
|
9,933 |
|
0.9 |
% |
|
|
10,357 |
|
0.8 |
% |
|
|
12,758 |
|
1.0 |
% |
Total investment securities available-for-sale |
|
$ |
1,014,605 |
|
95.4 |
% |
|
$ |
1,210,665 |
|
96.1 |
% |
|
$ |
1,254,887 |
|
96.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Held-to-maturity securities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal bonds |
|
$ |
31,000 |
|
2.9 |
% |
|
$ |
31,000 |
|
2.5 |
% |
|
$ |
31,200 |
|
2.4 |
% |
Other |
|
|
17,599 |
|
1.7 |
% |
|
|
17,744 |
|
1.4 |
% |
|
|
17,744 |
|
1.4 |
% |
Total investment securities held-to-maturity |
|
$ |
48,599 |
|
4.6 |
% |
|
$ |
48,744 |
|
3.9 |
% |
|
$ |
48,944 |
|
3.8 |
% |
Total investment securities |
|
$ |
1,063,204 |
|
100.0 |
% |
|
$ |
1,259,409 |
|
100.0 |
% |
|
$ |
1,303,831 |
|
100.0 |
% |
__________________ |
(1) |
Available-for-sale investment securities are reported at fair value and held-to-maturity investment securities are reported at amortized cost. |
FORBRIGHT, INC. AND SUBSIDIARIES
Deposits
(Unaudited)
|
|
September 30, 2026 |
|
June 30, 2026 |
|
December 31, 2025 |
||||||||||||
(dollars in thousands) |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
|
Amount |
|
% of total |
||||||
Non-interest-bearing deposits |
|
$ |
362,080 |
|
4.8 |
% |
|
$ |
435,065 |
|
6.0 |
% |
|
$ |
372,444 |
|
5.5 |
% |
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand |
|
|
108,987 |
|
1.4 |
% |
|
|
284,748 |
|
3.9 |
% |
|
|
275,259 |
|
4.1 |
% |
Money market |
|
|
1,146,396 |
|
15.1 |
% |
|
|
1,394,865 |
|
19.2 |
% |
|
|
1,206,544 |
|
17.8 |
% |
Savings |
|
|
4,914,624 |
|
64.5 |
% |
|
|
3,878,206 |
|
53.4 |
% |
|
|
3,500,532 |
|
51.6 |
% |
Time deposits |
|
|
1,078,583 |
|
14.2 |
% |
|
|
1,272,951 |
|
17.5 |
% |
|
|
1,423,136 |
|
21.0 |
% |
Total interest-bearing deposits |
|
|
7,248,590 |
|
95.2 |
% |
|
|
6,830,770 |
|
94.0 |
% |
|
|
6,405,471 |
|
94.5 |
% |
Total deposits(1) |
|
$ |
7,610,670 |
|
100.0 |
% |
|
$ |
7,265,835 |
|
100.0 |
% |
|
$ |
6,777,915 |
|
100.0 |
% |
__________________ |
(1) |
Excludes balances held-for-sale. |
FORBRIGHT, INC. AND SUBSIDIARIES
Capital Ratios
(Unaudited)
|
|
September 30, 2026(1) |
|
June 30, 2026 |
|
December 31, 2025 |
|||
Company: |
|
|
|
|
|
|
|||
Tier 1 leverage ratio |
|
9.80 |
% |
|
10.38 |
% |
|
9.79 |
% |
Total capital to risk-weighted assets ratio |
|
15.74 |
% |
|
16.05 |
% |
|
15.89 |
% |
Tier 1 capital to risk-weighted assets ratio |
|
12.87 |
% |
|
12.97 |
% |
|
12.72 |
% |
Common Equity Tier 1 to risk weighted-assets ratio |
|
12.87 |
% |
|
12.97 |
% |
|
12.72 |
% |
|
|
|
|
|
|
|
|||
Bank: |
|
|
|
|
|
|
|||
Tier 1 leverage ratio |
|
10.41 |
% |
|
11.24 |
% |
|
11.11 |
% |
Total capital to risk-weighted assets ratio |
|
14.52 |
% |
|
14.98 |
% |
|
15.14 |
% |
Tier 1 capital to risk-weighted assets ratio |
|
13.68 |
% |
|
14.08 |
% |
|
14.37 |
% |
Common Equity Tier 1 to risk weighted-assets ratio |
|
13.68 |
% |
|
14.08 |
% |
|
14.37 |
% |
__________________ |
(1) |
Regulatory capital ratios as of September 30, 2026 are preliminary pending filing of regulatory reports. |
FORBRIGHT, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
(Unaudited)
This earnings release contains “non-GAAP financial measures” within the meaning of Item 10(e) of Regulation S-K. Non-GAAP financial measures are financial measures that are not presented in accordance with GAAP. We use these non-GAAP financial measures in the internal evaluation of our performance and management of our business as well as to explain our results of operations to stockholders and the wider investment community. The following non-GAAP financial measures appear in this earnings release:
- Tangible common equity - We calculate tangible common equity by deducting goodwill and other intangible assets from stockholders' equity.
- Tangible common equity per common share - We calculate tangible common equity per common share by dividing tangible common equity, as defined above, by our total common shares outstanding for the period, excluding the dilutive effect of outstanding stock options, and including the effect of outstanding shares from restricted stock awards.
- Return on average tangible common equity - We calculate return on average tangible common equity by dividing adjusted net income for the period by average tangible common equity over the same period. Adjusted net income, used for the calculation of return on average tangible common equity, is calculated by adding back the tax effected amount of intangible asset amortization to net income.
- Non-core trust administration - We calculate non-core trust administration by deducting fixed monthly trust administration fees from trust administration, a component of other non-interest income as reported in the footnotes to the Consolidated Financial Statements. Non-core trust administration represents the reimbursements we receive for various expenses incurred in administration of the trusts.
- Non-core gains/(losses) on sales of loans and investment securities, net - We calculate non-core gains/(losses) on sales of loans and investment securities, net by deducting gains from sales of loans to Alliance Partners from gains/(losses) on sales of loans and investment securities, net, as reported on the Consolidated Statements of Income.
- Core and non-core non-interest income - Core non-interest income equals total non-interest income less (a) non-core trust administration, (b) non-core gains/(losses) on sales of loan and investment securities, net, (c) unrealized gains on loans and financing receivables, net, (d) rental income and (e) other income. Non-core non-interest income equals total non-interest income less core non-interest income.
- Adjusted total revenue - We calculate adjusted total revenue by deducting non-core non-interest income from total revenue.
- Pre provision net revenue - We calculate pre provision net revenue by adding provision for credit losses to income before income taxes.
Our management believes that these non-GAAP financial measures and the information they provide are useful to investors because these measures allow investors to view our performance in the same manner our management evaluates performance. Although we believe these non-GAAP financial measures are useful in evaluating our performance, these non-GAAP financial measures should not be considered in isolation or as a substitution for the most directly comparable or other financial measures presented in this earnings release under GAAP. Additionally, the manner in which we calculate these non-GAAP financial measures may be different from how other companies calculate financial measures with similar names.
FORBRIGHT, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - (continued)
(Unaudited)
|
|
As of and For the Three Months Ended |
|
As of and For the Nine Months Ended |
||||||||||||
(dollars in thousands, except per share data) |
|
September 30, 2026 |
|
June 30, 2026 |
|
September 30, 2026 |
|
September 30, 2025 |
||||||||
Tangible common equity |
|
|
|
|
|
|
|
|
||||||||
Stockholders’ equity (GAAP) |
|
$ |
991,749 |
|
|
$ |
967,163 |
|
|
$ |
991,749 |
|
|
$ |
789,773 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Goodwill |
|
|
18,519 |
|
|
|
18,519 |
|
|
|
18,519 |
|
|
|
18,519 |
|
Other intangible assets |
|
|
16,933 |
|
|
|
17,445 |
|
|
|
16,933 |
|
|
|
13,507 |
|
Tangible common equity (non-GAAP) |
|
$ |
956,297 |
|
|
$ |
931,199 |
|
|
$ |
956,297 |
|
|
$ |
757,747 |
|
|
|
|
|
|
|
|
|
|
||||||||
Total common shares outstanding |
|
|
50,764,380 |
|
|
|
49,697,208 |
|
|
|
50,764,380 |
|
|
|
40,653,612 |
|
|
|
|
|
|
|
|
|
|
||||||||
Stockholders’ equity per total common share outstanding (GAAP) |
|
$ |
19.54 |
|
|
$ |
19.46 |
|
|
$ |
19.54 |
|
|
$ |
19.43 |
|
Tangible common equity per total common share outstanding (non-GAAP) |
|
$ |
18.84 |
|
|
$ |
18.74 |
|
|
$ |
18.84 |
|
|
$ |
18.64 |
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average tangible common equity |
|
|
|
|
|
|
|
|
||||||||
Average stockholders' equity (GAAP) |
|
$ |
997,800 |
|
|
$ |
872,759 |
|
|
$ |
903,758 |
|
|
$ |
756,681 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Average goodwill |
|
|
18,519 |
|
|
|
18,519 |
|
|
|
18,519 |
|
|
|
18,519 |
|
Average other intangible assets |
|
|
15,713 |
|
|
|
12,839 |
|
|
|
13,883 |
|
|
|
14,068 |
|
Average tangible common equity (non-GAAP) |
|
$ |
963,568 |
|
|
$ |
841,401 |
|
|
$ |
871,356 |
|
|
$ |
724,094 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to the Company (GAAP) |
|
$ |
20,623 |
|
|
$ |
4,122 |
|
|
$ |
36,377 |
|
|
$ |
58,332 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Intangible asset amortization, net of tax |
|
|
448 |
|
|
|
476 |
|
|
|
1,134 |
|
|
|
757 |
|
Adjusted net income attributable to the Company (non-GAAP) |
|
$ |
21,071 |
|
|
$ |
4,598 |
|
|
$ |
37,511 |
|
|
$ |
59,089 |
|
|
|
|
|
|
|
|
|
|
||||||||
Return on average stockholders’ equity (GAAP) |
|
|
8.20 |
% |
|
|
1.89 |
% |
|
|
5.38 |
% |
|
|
10.31 |
% |
Return on average tangible common equity (non-GAAP) |
|
|
8.68 |
% |
|
|
2.19 |
% |
|
|
5.76 |
% |
|
|
10.91 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Non-core trust administration (non-GAAP) |
|
|
|
|
|
|
|
|
||||||||
Trust administration (GAAP) |
|
$ |
8,544 |
|
|
$ |
7,324 |
|
|
$ |
20,132 |
|
|
$ |
697 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Fixed monthly trust administration fees |
|
|
1,345 |
|
|
|
1,327 |
|
|
|
4,092 |
|
|
|
(1,237 |
) |
Non-core trust administration (non-GAAP) |
|
$ |
7,199 |
|
|
$ |
5,997 |
|
|
$ |
16,040 |
|
|
$ |
1,934 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-core gains/(losses) on sales of loans and investment securities, net (non-GAAP) |
|
|
|
|
|
|
|
|
||||||||
Gains on sales of loans and investment securities, net (GAAP) |
|
$ |
1,946 |
|
|
$ |
252 |
|
|
$ |
2,164 |
|
|
$ |
12,860 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Gains on sales of loans by Alliance Partners |
|
|
358 |
|
|
|
252 |
|
|
|
863 |
|
|
|
1,520 |
|
Non-core gains/(losses) on sales of loans and investment securities, net (non-GAAP) |
|
$ |
1,588 |
|
|
$ |
— |
|
|
$ |
1,301 |
|
|
$ |
11,340 |
|
FORBRIGHT, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures - (continued)
(Unaudited)
|
|
As of and For the Three Months Ended |
|
As of and For the Nine Months Ended |
||||||||||||
(dollars in thousands, except per share data) |
|
September 30, 2026 |
|
June 30, 2026 |
|
September 30, 2026 |
|
September 30, 2025 |
||||||||
Core and non-core non-interest income |
|
|
|
|
|
|
|
|
||||||||
Non-interest income (GAAP) |
|
$ |
29,100 |
|
|
$ |
21,846 |
|
|
$ |
66,530 |
|
|
$ |
49,428 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Non-core trust administration (non-GAAP) |
|
|
7,199 |
|
|
|
5,997 |
|
|
|
16,040 |
|
|
|
1,934 |
|
Non-core gains/(losses) on sales of loans and investment securities, net (non-GAAP) |
|
|
1,588 |
|
|
|
— |
|
|
|
1,301 |
|
|
|
11,340 |
|
Unrealized gains/(losses) on loans and financing receivables, net |
|
|
1,263 |
|
|
|
(963 |
) |
|
|
(1,035 |
) |
|
|
7,189 |
|
Rental income |
|
|
2,050 |
|
|
|
1,225 |
|
|
|
3,275 |
|
|
|
— |
|
Other (included in other non-interest income) |
|
|
(105 |
) |
|
|
(137 |
) |
|
|
(998 |
) |
|
|
(138 |
) |
Core non-interest income (non-GAAP) |
|
$ |
17,105 |
|
|
$ |
15,724 |
|
|
$ |
47,947 |
|
|
$ |
29,103 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-core non-interest income (non-GAAP) |
|
$ |
11,995 |
|
|
$ |
6,122 |
|
|
$ |
18,583 |
|
|
$ |
20,325 |
|
|
|
|
|
|
|
|
|
|
||||||||
Adjusted total revenue |
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
$ |
71,952 |
|
|
$ |
63,145 |
|
|
$ |
194,655 |
|
|
$ |
195,974 |
|
Non-interest income |
|
|
29,100 |
|
|
|
21,846 |
|
|
|
66,530 |
|
|
|
49,428 |
|
Total revenue (GAAP) |
|
$ |
101,052 |
|
|
$ |
84,991 |
|
|
$ |
261,185 |
|
|
$ |
245,402 |
|
Less: |
|
|
|
|
|
|
|
|
||||||||
Non-core non-interest income (non-GAAP) |
|
|
11,995 |
|
|
|
6,122 |
|
|
|
18,583 |
|
|
|
20,325 |
|
Adjusted total revenue (non-GAAP) |
|
$ |
89,057 |
|
|
$ |
78,869 |
|
|
$ |
242,602 |
|
|
$ |
225,077 |
|
|
|
|
|
|
|
|
|
|
||||||||
Non-interest income to total revenue (GAAP) |
|
|
28.8 |
% |
|
|
25.7 |
% |
|
|
25.5 |
% |
|
|
20.1 |
% |
Core non-interest income to adjusted total revenue (non-GAAP) |
|
|
19.2 |
% |
|
|
19.9 |
% |
|
|
19.8 |
% |
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Pre provision net revenue |
|
|
|
|
|
|
|
|
||||||||
Income before income taxes (GAAP) |
|
$ |
29,173 |
|
|
$ |
13,316 |
|
|
$ |
55,701 |
|
|
$ |
77,674 |
|
Add: |
|
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
|
1,499 |
|
|
|
5,899 |
|
|
|
10,871 |
|
|
|
17,311 |
|
Pre provision net revenue (non-GAAP) |
|
$ |
30,672 |
|
|
$ |
19,215 |
|
|
$ |
66,572 |
|
|
$ |
94,985 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20261029528749/en/
INVESTOR & MEDIA CONTACT: Ben Wakana, Chief Public Affairs and Investor Relations Officer | 207-551-7415 | bwakana@forbrightbank.com
Source: Forbright, Inc.